Bitcoin Price Technical Analysis for 24/02/2016 – Retreating to Former Resistance

Bitcoin Price Key Highlights

  • Bitcoin price had previously broken above a long-term symmetrical triangle to indicate that it had chosen the upside direction.
  • However, price is finding difficulty sustaining its climb so a pullback might be necessary.
  • Using the Fib tool on the latest rally on the 4-hour time frame shows that the retracement levels line up with the broken triangle resistance.

Bitcoin price might be able to resume its uptrend once it finds more support at the Fibonacci retracement levels.

Nearby Support Areas

Bitcoin price found resistance at the $450 area and is now retreating to $420, which is the 38.2% Fibonacci retracement level. A larger correction could last until the 50% level at $408.30 or the 61.8% Fib closer to the $400 mark and the moving averages.

Speaking of moving averages, the 100 SMA recently made an upward crossover from the 200 SMA, indicating that the path of least resistance is to the upside. This confirms that the uptrend is likely to carry on, probably taking bitcoin price back up to the latest highs at $450 or beyond.

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RSI is on the move down but

Read more ... source: TheBitcoinNews